Hexatronic Group AB (HTRO) AI Stock Analysis

• Market Cap: kr6.69B
• Dividend Yield: N/A
• Average Volume (3M): 1.17M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.97
• Revenue Growth: 0.01%
• EPS Growth: -71.63%
• Country: SE
• Employees: 1,997
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): -0.27
• Shares Outstanding: 205,637,220
• 10 Day Avg. Volume: 1,116,583
• 30 Day Avg. Volume: 1,166,324
• PEG Ratio: 3.25
• Price to Book (P/B): 1.38
• Price to Sales (P/S): 0.61
• P/FCF Ratio: 9.72
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1.92
• Revenue Forecast (FY): kr7.76B

• Rating: 50 Neutral
• Price Target: kr33.00 ▲(40.07% Upside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 02/07/26

The score is held down primarily by the sharp 2025 profitability deterioration (margin collapse and net loss), despite supportive positives from continued positive operating/free cash flow and manageable leverage. Technicals are constructive with a strong uptrend, but near-overbought readings add short-term risk. Valuation is a headwind because the negative P/E reflects loss-making performance and provides limited comparability.

Positive Factors

Strong cash generation

Consistent positive operating and free cash flow in 2025 demonstrates durable cash-generation capacity even during an earnings downturn. That sustained FCF provides financing optionality for capex, working capital needs, and deleveraging over multiple quarters without relying on external equity issuance.

Manageable leverage

A debt-to-equity ratio under 1.0 indicates a capital structure that is not overly stretched, providing resilience to cyclical shocks. With leverage improved versus prior years, the company has structural headroom to invest in production or absorb margin pressure while retaining access to credit markets.

Established revenue base

Stable revenues and a track record of multi-year growth imply persistent end-market demand for fiber infrastructure. Even modest near-term growth preserves scale benefits in manufacturing and customer relationships, supporting recovery potential if margins normalize over several quarters.

Negative Factors

Sharp margin deterioration

A dramatic collapse in gross margin to single digits is a structural red flag: it suggests pricing, cost or mix issues that materially undermine profitability. If sustained, such margin erosion will erode returns, restrict reinvestment, and could force restructuring or price concessions over multiple quarters.

Weaker cash coverage of debt

Declining ability of operating cash flow to cover debt indicates reduced financial flexibility and a longer path to deleveraging. Over the medium term this raises refinancing and interest-coverage risk, making the balance sheet more vulnerable if cash generation weakens or capex needs rise.

Equity decline and ROE negative

A falling equity base and negative ROE reflect earnings erosion that weakens the company's capital cushion. Structurally, this reduces the ability to absorb future losses or fund growth internally, potentially forcing external financing or asset sales if profitability doesn't recover within several quarters.

Hexatronic Group AB Business Overview & Revenue Model

Company Description

Hexatronic Group AB (publ), together with its subsidiaries, designs, develops, manufactures, markets, and sells fiber communication solutions in Sweden and internationally. The company supplies passive infrastructure for telecom companies; and provides components and system solutions. It also offers fiber optic cables, ducts, copper cables, and network accessories; high tech products for fiber optic communications; fiber optic solutions, such as prefabricated ODFs, multi-fiber cable assemblies, and industrial applications; and training services for telecommunications, electric/gas, and health/safety markets. In addition, the company provides high-density polyethylene pipes for communication, power, fiber-to-the-home, ITS, CATV, geothermal, and industrial pressure pipe applications; develops and certificates programs for various industries; and apprenticeships and specialist training programs, as well as distributes fiber-optic connection and optical measurement technology. It serves wholesalers, telecom operators, network owners, telecom companies, installers, and system houses. Hexatronic Group AB (publ) was incorporated in 1972 and is headquartered in Gothenburg, Sweden.

How the Company Makes Money

Hexatronic makes money primarily by selling fiber-optic infrastructure products and system solutions used in the buildout and expansion of broadband and telecommunications networks. Key revenue streams typically include: (1) product sales of fiber-optic cables (used in access and backbone networks), (2) ducting and microduct systems (used to route and protect fiber and enable blown-fiber installations), and (3) connectivity and installation-related components/systems that complement cable and duct deployments. Revenue is largely generated through business-to-business contracts and purchase orders from telecom operators, network builders, utilities, and contractors executing fiber-to-the-home (FTTH), metro, and other network rollouts. Earnings are influenced by the pace of fiber network investment in its end markets, the company’s ability to manufacture and deliver at scale, and its mix of standardized products versus higher-value system offerings. Specific significant partnerships: null.

Hexatronic Group AB Financial Statement Overview

Summary

Overall financials weakened materially in 2025: revenue grew modestly but margins collapsed and the company swung to a net loss (income statement score 38). The balance sheet remains reasonably leveraged (debt-to-equity ~0.88; balance sheet score 56), and cash flow stayed positive with solid operating and free cash flow (cash flow score 60), partially cushioning the earnings deterioration.

Income Statement

The company shows a clear profitability deterioration in the latest annual period (2025): revenue grew modestly (+2.27%) but swung to a small net loss, with a sharp drop in gross margin (to ~5.9% from ~41.8% in 2024) and weaker operating profitability. This is a major negative inflection versus 2022–2024, when margins were healthy and earnings were solid (notably 2023). The main strength is that revenue has not collapsed and long-term growth from 2020–2023 was strong, but the margin compression and earnings reversal in 2025 materially weaken income statement quality.

Balance Sheet

Leverage looks manageable overall, with debt-to-equity below 1.0 in the latest year (~0.88), improved from higher leverage periods (above 1.0 in 2021 and 2023). However, equity declined in 2025 versus 2024 and return on equity turned slightly negative in 2025, reflecting the earnings downturn. Assets remain sizable and the capital structure is not overly stretched, but the recent profitability weakness increases balance-sheet risk if it persists.

Cash Flow

Cash generation remains a relative bright spot: 2025 produced solid operating cash flow (~585M) and free cash flow (~487M) with strong free cash flow growth (+33.06%). That said, operating cash flow covered only a modest portion of debt (~0.35 in 2025, down from ~0.62 in 2024), and free cash flow was lower than 2024 despite the positive growth rate shown. The key strength is continued positive free cash flow even in a loss year; the key weakness is reduced cash-flow-to-debt comfort versus the prior year.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.79B	7.58B	8.15B	6.57B	3.49B
Gross Profit	459.00M	3.17B	3.50B	2.87B	1.53B
EBITDA	766.00M	1.10B	1.62B	1.26B	483.40M
Net Income	-14.00M	346.00M	848.00M	795.00M	253.10M
Balance Sheet
Total Assets	8.06B	8.96B	8.73B	7.39B	4.72B
Cash, Cash Equivalents and Short-Term Investments	661.00M	633.00M	813.00M	552.00M	675.10M
Total Debt	2.69B	3.07B	3.49B	2.35B	1.92B
Total Liabilities	4.59B	4.91B	5.30B	4.58B	3.07B
Stockholders Equity	3.44B	4.02B	3.40B	2.77B	1.64B
Cash Flow
Free Cash Flow	487.00M	596.00M	426.00M	190.50M	-97.60M
Operating Cash Flow	585.00M	921.00M	944.00M	669.50M	104.70M
Investing Cash Flow	-272.00M	-508.00M	-1.43B	-1.10B	-1.15B
Financing Cash Flow	-199.00M	-613.00M	770.00M	270.60M	1.51B

Hexatronic Group AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.56
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:HTRO, the sentiment is Positive. The current price of 23.56 is below the 20-day moving average (MA) of 29.61, below the 50-day MA of 26.70, and above the 200-day MA of 22.75, indicating a bullish trend. The MACD of 1.62 indicates Negative momentum. The RSI at 67.59 is Neutral, neither overbought nor oversold. The STOCH value of 77.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:HTRO.

Hexatronic Group AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
WAYS	60 Neutral	kr367.04M	32.02	―	―	10.55%	―
ALCA	57 Neutral	kr801.51M	-55.21	―	―	-7.91%	-33.91%
HTRO	50 Neutral	kr6.69B	-338.28	3.38%	―	0.01%	-71.63%
MAVEN	47 Neutral	kr271.99M	-18.80	-5.81%	―	-9.79%	-144.24%
INCOAX	44 Neutral	kr65.50M	-2.29	-24.59%	―	-48.24%	-48.99%

Hexatronic Group AB Corporate Events

Hexatronic Buys German Connector Firm JOWO to Boost Harsh Environment Growth

Hexatronic Group has agreed to acquire German connector manufacturer and distributor JOWO Systemtechnik AG, a supplier to defense, energy and industrial customers, in a deal aimed at expanding its Harsh Environment business area. The move adds complementary technology, deeper access to the European defense market, and will push Harsh Environment pro forma net sales toward SEK 1.5 billion, with the transaction self-funded and expected to close in the second quarter of 2026 pending German regulatory approval.

JOWO, which reported 2025 net sales of about EUR 18 million and an EBITDA margin around 14 percent, will be consolidated into Hexatronic’s Harsh Environment segment, with its management team remaining in place. The acquisition supports Hexatronic’s strategy to diversify end-market exposure beyond traditional telecom, accelerate growth in harsh-environment connectivity, and strengthen its position in defense-related connectivity solutions for demanding applications.

The most recent analyst rating on (SE:HTRO) stock is a Hold with a SEK27.00 price target. To see the full list of analyst forecasts on Hexatronic Group AB stock, see the SE:HTRO Stock Forecast page.

Hexatronic Lifts Data Center Growth but Margins Hit by Restructuring Costs

Hexatronic reported a solid but margin-pressured fourth quarter of 2025, with net sales edging up 1 percent to SEK 1,848 million on strong 10 percent organic growth, particularly a 59 percent surge in Data Center sales, while adjusted EBITA margin declined to 7.2 percent due mainly to non-recurring restructuring costs and currency headwinds. The company expanded its performance improvement program within Fiber Solutions, including its Clinton, South Carolina factory, booked SEK 96 million in one-time charges tied to European operations and the US plant, and raised expected annual EBITA run-rate savings to SEK 120 million by the end of Q1 2026, while maintaining adjusted leverage at 1.9x, improving operating cash flow, streamlining its Fiber Solutions regional structure, and acquiring US-based Communication Zone to bolster its North American footprint.

The most recent analyst rating on (SE:HTRO) stock is a Buy with a SEK26.00 price target. To see the full list of analyst forecasts on Hexatronic Group AB stock, see the SE:HTRO Stock Forecast page.

Hexatronic to Present Q4 and Full-Year 2025 Results on 5 February

Hexatronic Group AB will publish its fourth-quarter and full-year 2025 results on 5 February 2026 at 07:00 CEST, followed by a webcast presentation later that morning with the CEO, CFO and Deputy CEO, during which investors and analysts can submit written questions. A parallel teleconference with Q&A will also be available via pre-registration, and both the webcast and accompanying presentation materials will be accessible on the company’s website, underscoring Hexatronic’s ongoing efforts to maintain transparent communication with the capital markets around its performance and outlook in the fiber connectivity sector.

The most recent analyst rating on (SE:HTRO) stock is a Hold with a SEK26.00 price target. To see the full list of analyst forecasts on Hexatronic Group AB stock, see the SE:HTRO Stock Forecast page.